Published: Saturday, April 12, 2014 at 4:30 a.m.

Last Modified: Friday, April 11, 2014 at 8:04 p.m.

A 31-year veteran of the FBI took a room full of guests at Trinity Presbyterian Church Friday morning on a “fast journey... through the world of blue-, white-, sometimes red- and pink-collar crimes.”

Using examples of cases from Hendersonville and around the nation, former agent Allen Ezell gave a presentation to the American Association of University Women, saying that sometimes the sneakiest criminals are right under your nose.

The entire spectrum of crime costs the United States between $1.7 trillion and $3 trillion each year, said Ezell, co-author of “Degree Mills: The Billion-dollar Industry That Has Sold Over A Million Fake Diplomas.”

Susan Murphy of the AAUW said she invited Ezell, her neighbor, to give a talk on his book last year and the program was a success. She invited him to talk to the group again on Friday about economic crimes.

White-collar crimes, also known as economic crimes, are financially motivated in nature, bank on deceit and concealment and are typically committed without violence unless the collars turn “red,” he said, and involve injury or death.

“These fraudsters generally are psychopaths who have a need for stimulation; shallow affect, callousness, poor behavioral controls, early behavioral problems, and juvenile delinquency,” he said. “Sometimes they believe violence is their only way out.”

But Ezell cautioned that an economic crime “is not a victimless crime.” White-collar crimes cost each taxpayer about $4,118 a year in losses, enforcement, victim assistance and imprisonment, and is 14 times the cost of blue-collar crimes, he said.

“The United States has the highest documented incarceration rate in the world. We have about 2.3 million prisoners locked up. The federal prison has about 10 percent — 220,000 — and they're about 40 percent above capacity,” he said. “1980 was the beginning of the mandatory sentences of various crimes; because of that the prison rate has quadrupled. From 1989 to 2009 the rate of female prisoners has increased five-fold due to recreational drugs and other criminal involvement.”

White-collar crimes, generally committed by females at their place of employment, have spawned the new moniker “pink-collar crimes.”

Jail or crime college?

“Many states are spending six times the amount of money on prisoners than they are on higher education... The debate continues: is prison for punishment or rehabilitation or is it an institution of higher learning?” Ezell queried.

In a PowerPoint slide, he pointed out that white-collar crimes can wipe out a family's savings, destroy communities and businesses and cost investors billions, but blue-collar crimes are punished more severely.

John Edmonds Jr., 59, and his 26-year-old son, James Edmonds, were convicted of robbing Forest Commercial Bank of more than $5,000 in Biltmore Forest on Dec. 8, 2011. Last year, John Edmonds was sentenced to at least eight years in prison. His son received a minimum prison sentence of six years.

Ezell cited the case of Karl Karlsen, a Varick, NY father who admitted to knocking a jack out from under his 5,000-pound pickup truck, crushing his son, in order to cash in a $700,000 life insurance policy. This crime, he said, “was blue, turned to red and then went white.”

A judge told Karlsen he was “not fully human” and sentenced him to at least 15 years in prison.

White collar

“The 'perfect crime' is the one which is never detected, nor recognized for what it is,” Ezell said.

Law enforcement officers investigating white-collar crimes can face difficult challenges when evidence grows stale, witnesses disperse or decide not to rat on friends, or offenders attempt to impede the investigation or confuse the issue.

“White-collar criminals are opportunists who learn to take advantage of their circumstances to accumulate financial gain,” he said. “They are educated, intelligent, affluent, confident individuals whose jobs involve unmonitored access to large sums of money.”

Unlike blue-collar criminals, white-collar offenders may be convention speakers and write books on how to survive life in prison, Ezell said, but most of the “hard time” is done at easy minimum security prisons.

“I've been to Maxwell Air Force Base. There's a federal prison camp there. There are no fences. There's a yellow line. The inmates will tell you, 'we dream about tunneling under, climbing over and going around the line,'” he said. “If you go over that line when you're not sent out on a work detail to cut the grass on the golf course for the officers, then that's considered an escape and now you're locked up in the big house. It's a privilege to be in that level of a facility.”

White-collar crimes run the gamut of deceitful offenses from bank fraud, bid rigging, blackmail and bribery to computer fraud, embezzlement, insider trading, political corruption and tax fraud. Citing a story on the Times-News' website Friday, Ezell said the IRS had issued nearly $4 billion in fraudulent tax refunds last year, leading to 1,500 criminal investigations of identity theft in 2013.

He cited the case of former Hendersonville attorney Sam Neil, who admitted to embezzling close to $2.5 million from his clients. Neill was sentenced last year to serve three years in federal prison before a three- to five-year stint in the state slammer.

Ezell also mentioned Keith Vinson, the Seven Falls developer who was found guilty of 13 federal fraud and conspiracy charges related to the failed development on Oct. 17. Vinson awaits sentencing in federal court and a trial on state charges of defrauding his employees of their health insurance.

Mark W. Olesen, treasurer of the Western North Carolina Down Syndrome Alliance in Asheville, was arrested last year and accused of embezzling close to $27,000 from the charity's business credit card.

Ezell mentioned the case of William Lee Smith, a former evidence room manager at the Asheville Police Department who pled guilty to embezzling $10,000 to $30,000 in drugs from the evidence locker. An audit showed guns and cash were also missing.

He also mentioned former Charlotte mayor Patrick Cannon, embroiled in a case of bribery and political corruption. He was officially charged with the crimes in March after accepting a $20,000 bribe from an undercover agent.

“These crimes can take place, anywhere, at any time, by our most trusted neighbors, businessmen and government employees,” Ezell told the crowd.

He advised them to “be alert! Be on guard! Keep your eyes and ears open” and recognize the red flags: a person living beyond one's means, a control freak, someone who is irritable or has a wheeler/dealer attitude, divorce or family problems, addiction problems, always complaining about inadequate pay, someone who refuses to take a vacation, or an employee who ambushes a boss at the end of the day looking for a signature on financial-related transactions.

Ezell reminded the crowd of the old adage, “If it seems too good to be true, it is!”

<p>A 31-year veteran of the FBI took a room full of guests at Trinity Presbyterian Church Friday morning on a “fast journey... through the world of blue-, white-, sometimes red- and pink-collar crimes.”</p><p>Using examples of cases from Hendersonville and around the nation, former agent Allen Ezell gave a presentation to the American Association of University Women, saying that sometimes the sneakiest criminals are right under your nose.</p><p>The entire spectrum of crime costs the United States between $1.7 trillion and $3 trillion each year, said Ezell, co-author of “Degree Mills: The Billion-dollar Industry That Has Sold Over A Million Fake Diplomas.”</p><p>Susan Murphy of the AAUW said she invited Ezell, her neighbor, to give a talk on his book last year and the program was a success. She invited him to talk to the group again on Friday about economic crimes.</p><p>White-collar crimes, also known as economic crimes, are financially motivated in nature, bank on deceit and concealment and are typically committed without violence unless the collars turn “red,” he said, and involve injury or death. </p><p>“These fraudsters generally are psychopaths who have a need for stimulation; shallow affect, callousness, poor behavioral controls, early behavioral problems, and juvenile delinquency,” he said. “Sometimes they believe violence is their only way out.”</p><p>But Ezell cautioned that an economic crime “is not a victimless crime.” White-collar crimes cost each taxpayer about $4,118 a year in losses, enforcement, victim assistance and imprisonment, and is 14 times the cost of blue-collar crimes, he said. </p><p>“The United States has the highest documented incarceration rate in the world. We have about 2.3 million prisoners locked up. The federal prison has about 10 percent — 220,000 — and they're about 40 percent above capacity,” he said. “1980 was the beginning of the mandatory sentences of various crimes; because of that the prison rate has quadrupled. From 1989 to 2009 the rate of female prisoners has increased five-fold due to recreational drugs and other criminal involvement.”</p><p>White-collar crimes, generally committed by females at their place of employment, have spawned the new moniker “pink-collar crimes.”</p><p>Jail or crime college?</p><p>“Many states are spending six times the amount of money on prisoners than they are on higher education... The debate continues: is prison for punishment or rehabilitation or is it an institution of higher learning?” Ezell queried. </p><p>In a PowerPoint slide, he pointed out that white-collar crimes can wipe out a family's savings, destroy communities and businesses and cost investors billions, but blue-collar crimes are punished more severely.</p><p>Blue-collar crimes, committed against another person or property, involve crimes of arson, assault, theft, robbery, burglary, larceny, drug abuse, gambling, kidnapping, murder, poaching, prostitution and vandalism, he said.</p><p>John Edmonds Jr., 59, and his 26-year-old son, James Edmonds, were convicted of robbing Forest Commercial Bank of more than $5,000 in Biltmore Forest on Dec. 8, 2011. Last year, John Edmonds was sentenced to at least eight years in prison. His son received a minimum prison sentence of six years.</p><p>Ezell cited the case of Karl Karlsen, a Varick, NY father who admitted to knocking a jack out from under his 5,000-pound pickup truck, crushing his son, in order to cash in a $700,000 life insurance policy. This crime, he said, “was blue, turned to red and then went white.”</p><p>A judge told Karlsen he was “not fully human” and sentenced him to at least 15 years in prison.</p><p>White collar</p><p>“The 'perfect crime' is the one which is never detected, nor recognized for what it is,” Ezell said.</p><p>Law enforcement officers investigating white-collar crimes can face difficult challenges when evidence grows stale, witnesses disperse or decide not to rat on friends, or offenders attempt to impede the investigation or confuse the issue.</p><p>“White-collar criminals are opportunists who learn to take advantage of their circumstances to accumulate financial gain,” he said. “They are educated, intelligent, affluent, confident individuals whose jobs involve unmonitored access to large sums of money.”</p><p>Unlike blue-collar criminals, white-collar offenders may be convention speakers and write books on how to survive life in prison, Ezell said, but most of the “hard time” is done at easy minimum security prisons.</p><p>“I've been to Maxwell Air Force Base. There's a federal prison camp there. There are no fences. There's a yellow line. The inmates will tell you, 'we dream about tunneling under, climbing over and going around the line,'” he said. “If you go over that line when you're not sent out on a work detail to cut the grass on the golf course for the officers, then that's considered an escape and now you're locked up in the big house. It's a privilege to be in that level of a facility.”</p><p>White-collar crimes run the gamut of deceitful offenses from bank fraud, bid rigging, blackmail and bribery to computer fraud, embezzlement, insider trading, political corruption and tax fraud. Citing a story on the Times-News' website Friday, Ezell said the IRS had issued nearly $4 billion in fraudulent tax refunds last year, leading to 1,500 criminal investigations of identity theft in 2013.</p><p>He cited the case of former Hendersonville attorney Sam Neil, who admitted to embezzling close to $2.5 million from his clients. Neill was sentenced last year to serve three years in federal prison before a three- to five-year stint in the state slammer.</p><p>Ezell also mentioned Keith Vinson, the Seven Falls developer who was found guilty of 13 federal fraud and conspiracy charges related to the failed development on Oct. 17. Vinson awaits sentencing in federal court and a trial on state charges of defrauding his employees of their health insurance.</p><p>Mark W. Olesen, treasurer of the Western North Carolina Down Syndrome Alliance in Asheville, was arrested last year and accused of embezzling close to $27,000 from the charity's business credit card.</p><p>Ezell mentioned the case of William Lee Smith, a former evidence room manager at the Asheville Police Department who pled guilty to embezzling $10,000 to $30,000 in drugs from the evidence locker. An audit showed guns and cash were also missing.</p><p>He also mentioned former Charlotte mayor Patrick Cannon, embroiled in a case of bribery and political corruption. He was officially charged with the crimes in March after accepting a $20,000 bribe from an undercover agent. </p><p>“These crimes can take place, anywhere, at any time, by our most trusted neighbors, businessmen and government employees,” Ezell told the crowd. </p><p>He advised them to “be alert! Be on guard! Keep your eyes and ears open” and recognize the red flags: a person living beyond one's means, a control freak, someone who is irritable or has a wheeler/dealer attitude, divorce or family problems, addiction problems, always complaining about inadequate pay, someone who refuses to take a vacation, or an employee who ambushes a boss at the end of the day looking for a signature on financial-related transactions. </p><p>Ezell reminded the crowd of the old adage, “If it seems too good to be true, it is!”</p><p>Reach Weaver at emily.weaver@blueridgenow.com or 828-694-7867.</p>